Tuesday, 16 June 2026
UK power firm on Hormuz LNG squeeze & Norwegian outages; Q3 cap jumps 13%
Prices rising sharplyCal-27 wholesale: £81.48/MWh
Energy prices are higher than normal right now, mainly because gas supplies from Norway have been disrupted and a conflict in the Middle East has reduced the amount of gas shipped by tanker to Europe, pushing up the cost of the fuel that generates most of our electricity. Prices are likely to stay elevated over the next couple of weeks unless either the Norwegian supply comes back on or the situation in the Middle East improves significantly.
What's affecting prices
- •Norwegian gas pipelines running below normal due to field outages
- •Middle East conflict blocking LNG tanker routes through the Strait of Hormuz
- •Qatar has extended an LNG supply suspension until mid-August
- •EU gas storage levels well below where they should be for this time of year
- •Ofgem's household price cap rising 13% from 1 July, reflecting higher wholesale costs
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.